Workday stock jumps as company raises margin forecast on AI demand

Workday shares surged in extended trading on Thursday after it reported stronger-than-expected quarterly results and raised its full-year margin forecast, driven by a demand for artificial intelligence products.

The company said first-quarter revenue rose 13 percent to $2.46 billion in the period ending April 30.

Net income climbed to $222 million, or 87 cents per share, compared with $68 million, or 25 cents per share, a year earlier.

Workday also lifted its full-year adjusted operating margin forecast to 30.5 percent from 30 per cent previously.

“Our core business is strong, our AI strategy is working, and we’re moving with the speed and focus required to lead,” co-founder and chief executive Aneel Bhusri said in the company statement.

The company said the number of customers using its AI agents more than doubled from the previous quarter, with more than 4,000 clients now using at least one AI product.

Annualised revenue from Workday’s AI solutions is approaching $500 million, company president Gerrit Kazmaier said during a call with analysts.

“The 150th feature in HR or finance is not going to move the needle for our business. The next agentic application will,” Bhusri said.